Real Estate Trends

in a Time
of Uncertainty

March 2012

Strategic Issues Work Group

Association Executives Committee

National Association of REALTORS

What forces and trends will be shaping

the industry in the next few years?
The Strategic Issues Work Group of the National Association of Realtors Association Executives Committee
was charged with identifying emerging trends and issues that are likely to have a significant impact on the
real estate industry in the near future. The goal was to prepare a report that will assist real estate associations,
brokers, sales associates and affiliated professionals in their strategic planning. This is the sixth such report in
the last 12 years.
On February 67, 2012, the work group held a series of structured discussions with U.S. brokers, sales
associates, real estate consultants, economists and technology experts, asking them to comment on industry
trends. For reasons of confidentiality, the names of those participants are not included in this report; however,
their comments are cited as direct quotations. The participants were asked the following two questions:
1. What do you see as the future of real estate in the next few years?
2. What are the major changes in the real estate business ahead?
Those candid, interactive discussions are summarized in this report, which covers both the challenges and the
potential opportunities facing the U.S. real estate industry in the new few years.

I. Introduction: Change occurs most often

during down markets.
An industry consultant

While participants reached consensus on many points, there were also strong opposing opinions. In these cases,
we are presenting their contradictory comments, without making a judgment. As with our previous reports,
this examination of strategic trends draws no conclusions and makes no recommendations. Any action you take
as a Realtor, association executive or affiliated professional must be your own decision, based on your own
unique market, goals and skills.

Today, consumers are bombarded with information about real estate:

II. Strategic
Issues
Work
Group
Participants

News stories about home prices, sales volume and other trends
Thousands of online sites offering property facts, analysis and opinions
Social media pages with text, photos and videos
Multimedia branding messages from agents, brokers and franchises
Multiple listing service (MLS) and syndicated sites with listing information
In addition, consumers are trying to make sense of daily news articles about the economy and financial
markets, while dealing with concerns about their jobs, their savings and their retirement plans.
Mark Allen
Mike Barr
Russ Cofano
David Charron
Ginger Downs
Bob Hale
Marc Lebowitz
Terry Penza
Mike Ruzicka
Joel Singer

Facilitator
Jerry Matthews

Clearly, the real estate industry has an opportunity to simplify the consumer experience, bring greater clarity to
the transaction, and provide trusted advice in these uncertain times. That need for simplicity is already driving
trends like curation of consumer experiences and collaboration by multidisciplinary specialists.
Real estate agents, brokers, managers, association executives and multiple listing service (MLS) specialists often
have very different views of the real estate industry. But based on our task forces interviews, there are several
common themes:

III. Executive
Summary: The Value

of Simplicity

NAR Staff

Doug Hinderer
Cindy Sampalis

How do you rise above being

acommodity? You need to design
a new experience that delivers real
value to a customer.
A services consultant

More is not always better.

Collaboration, not competition, is a growing trend.
Consolidation will accelerate at every level of the real estate industry.
At that same time, agents and brokers are also searching for ways to enrich their consumer experience. Thats
driving technology trends like mobile applications, interactive videos, and tablet-based showing and listing
presentations. By giving the consumer more options, more access and gee whiz applications, real estate
professionals can distinguish themselves in the marketplace. After all, consumers continue to ask, What is
your value? as traditional pieces of the transaction are shifted away to digital, social and mobile media sites.
Associations and MLS organizations are also considering alternative models for addressing their loss of
membership, revenue, and services. For them, simple means improving the member experience and
consideration of new approaches that include consolidation, or strategic alliances, with other Associations
Our previous reports (2001, 2003, 2006, 2008 and 2010) focused on the convergence of mobile, social and
local trends; changing consumer, technology innovations; alternative business models; and the issue of value as
key themes in the ongoing conversation about the future of real estate. We invite our readers to review those
reports, as many of those trends are still occurring, and in many cases, growing.
Building on our prior work, this report addresses the latest trends relating to consumers, the housing market,
business models and technology.

Thirty-somethings Susan and her partner are trying to buy their first home, but feeling frustrated by the
process. Theyve picked out five condos in their neighborhood that looked promising, but found the websites
gave conflicting information. The first agent they contacted didnt know how to send text messages. The second
agent didnt know as much about the buildings as they did. But Matt, the third sales associate, made it simple
for them. He advised on their approach, validated the information, helped negotiate the contract, and made
sure everything was in place for a smooth closing. Now, Susan is sending Matt a steady stream of referrals
by text.
In an era of digital, mobile and social communication, buyers and sellers have no problem gathering vast
amounts of detailed information. But in many cases they dont know whats accurate, whats relevant and what
issues are important when buying or selling a home.
The same problem exists in other areas of the real estate industry. Its not always easy for a buyer or seller to
understand the nuances of the agent-broker relationship, including concepts like dual agency, or the tall stack
of disclosure, contact, inspection, mortgage and closing documents.
Even in technology, less is often more. Apple has done it better than anyone, said one agent. Its minimalist
design philosophy led to a more powerful phone, yet with just one button, while also simplifying how we use
computers, and purchase music and videos.
Consumer product studies show that simplification often results in increased sales. For instance, one
supermarket was offering 27 brands of jam. When it reduced the variety to only six brands, the rate of purchase
actually tripled. The lesson: consumers are less likely to act when faced with too many choices.

IV. Simplification: Driving Industry

Consolidation
and Collaboration

Brokers and agents have simplified their businesses. They are more focused on areas of excellence and have
stripped away the excess such as marginal branches, unnecessary services, and low return marketing. In the
process they have become not only leaner, but also more productive.
As one broker said, We need to look at how we can simplify our services, so that we can, in turn, can simplify
a customers life.

Emerging Opportunity: Curation of content

We live in a world with massive amounts of

easily accessible information. We need to
simplify things for our customers.
A top agent

Just as a museum curator sifts through a collection of art or antiquities in order to select and produce an
attractive display for the public, real estate agents can become content curators for their customers. This
involves sifting through the data, determining its relative value, and sharing the most relevant information with
buyers, sellers and investors.
Brokers can apply the same strategy to strengthen their agent relationships, such as making technology choices.
As one broker said, Agents today dont know which tools to buy or how to implement them. As a result, they
spend too much time learning about technology rather than going out and serving their customers. So brokers
can provide the service of constantly evaluating technology and making choices for the agents.

Consolidation: Addressing Industry Overcapacity

Collaboration: A Rising Trend

We have too many agents, brokers, associations and MLS

Agents and managers need to huddle together, rather than move

organizations. So, what steps do we need to take to move

farther apart. Thats the best way to solve difficult problems.

toward greater efficiency?

A regional broker
A large broker

As a regional manager for a far-flung Southwestern brokerage company, Rosalie pays close attention to her
daily calendar, which is always close at hand in her iPhone. Today, she will be spending the morning in the
downtown office holding a series of videoconference sales meetings with the agents in each of her brokers
satellite offices. Although the last round of staffing cutbacks left no managers at those sites, Rosalie has
been able to keep the teams rolling through technology and once-a-week personal visits.
Some consultants forecast a steady reduction in the number of real estate professionals over the next
few years, continuing the shrinkage trend. The extended downturn has been particularly difficult for
brokerages with modest profitability, and cutting expenses even further is no longer an option. Such
pressures naturally lead to consolidation.
Another factor leading to consolidation is that many real estate professionals in their late 50s and early
60s are taking a good, hard look at the future. Is this the time to groom a successor or is it better to find a
buyer for the business? One of the key factors is a lack of bench strength at many companies, according
to one consultant. Developing a succession plan and grooming younger managers for leadership positions
is essential for real estate companies of all sizes.
Meanwhile, larger companies with access to capital can pick and choose their acquisition and merger
targets. Ironically, a slightly improving real estate market will help with firm valuations and could
increase acquisitions.
Technology has also made it easier for agents, brokers and associations to operate effectively with fewer
people to manage business operations. Brokers will keep on cutting expenses, hoping to improve
profitability once transaction volume starts to increase again, said one broker. But its going to take a
while before most firms see a return to healthy levels of profitability.

Jose can look back on his first year as a broker with a feeling of satisfaction. He has recruited a team of young,
enthusiastic agents, trained them in using a common technology platform and set high standards for customer
service. Hes branded his company as a boutique firm specializing in the starter-home market and rave reviews
of his agents are already spreading across Facebook. He believes his broker-centric model is the wave of the
future, and even though his agents might get a higher commission split with another firm, the financial
advantages are outweighed by the sense of collaboration and teamwork at his brokerage.
Traditionally, the real estate brokerage industry has been extremely competitive as agents vie for customers and
brokers seek productive agents. That competitive spirit isnt going to disappear any time soon a good thing
since competition can lead to better customer service and innovative solutions.
However, there are clear signs that collaboration is an emerging trend, particularly with the younger real estate
professionals (Generation Y or Millennials). Unlike the Gen Xers and Baby Boomers, who value individuality
and independence, the Millennials are used to working in teams to solve common problems. In the real estate
sector, a growing number of agents and brokers have been able to harness that collaborative spirit to form highproducing teams or nurturing office environments.
One of the benefits of collaboration for brokers and team leaders is a smoother, more consistent delivery
of services to the customer. Another is an increased sense of belonging that can reduce agent turnover
and improve customer acquisition. Finally, a collaborative approach supports specialist roles, enhancing the
collective knowledge and skill set of the entire team.

Emerging Opportunity: Recruiting a Collaborative Team

Brokers and team leaders who create a collaborative work climate are likely to have an edge when recruiting
new talent. So rather than promote the potential for individual financial success (The skys the limit!) a
different appeal may be more effective (The team assures individual success!).

The consolidation trend has also impacted associations and MLSs. In the task forces companion survey
of all association presidents and all association executives, the most often cited future trend was merger
or consolidation with other associations. The reasons ranged from making life easier (and simpler)
for members to enhancing the value of membership. Like brokerages, associations have cut all possible
expenses and overhead and now face tough decisions on core services, or even survival, going forward in
the midst offalling revenues.

Emerging Opportunity: Scale Up

While many boutique firms continue to think small, mid-size brokers may want to scale up their
operations through mergers or acquisitions. One consultant notes that broker profitability improves
substantially when there are 75 agents or more per office. For several years, the findings have been fairly
consistent, he said. Size matters when it comes to traditional broker productivity.

Mobility, speed and personal service are critically important for serving todays consumers. But understanding
local markets and building relationships with buyers and sellers using their preferred communication
channels remain the keys to success in the real estate industry.
Establishing trust remains a vital issue for buyers and sellers of all ages, who are skeptical of established
wisdom in all its forms. Many buyers would like to see more agent ratings and reviews, providing more
visibility into the process, said one broker. Our industry would also benefit from high standards of data
accuracy and integrity, since there seem to be different levels of information quality on every non-MLS site.
Along with trust, buyers and sellers want greater transparency at every stage of the process. Real estate
professionals need to be straight-shooters when answering questions like these: What services am I paying
for? What fees can I expect? How do I know if my contract will go through?
Due largely to the trust issue, some buyers now prefer to spend hours and hours searching for homes on thirdparty sites, such as Realtor.com, Zillow and Trulia, before contacting an agent or broker. Once they land on
an agents or brokers site, they dont like to register or provide personal information for fear that they will be
bombarded with unwanted sales solicitations.
But when prospective buyers are ready to act, they want an immediate response. An agent who has been
nurturing an online lead for nine months might get a sudden text: We want to see this house tonight. Can
you arrange a showing? And if the agent takes more than 10 minutes to get back to the prospect, it may
already be too late another sales associate may have taken her place.

V. Consumer
Trends: Seeking Trust,

Transparency and an
Enriched Experience

We need to simplify our services so we, in turn,

can simplify our customers life.
A leading broker

However, consumers are also relying on their Facebook friends and other online sources for referrals to real
estate professionals. Social media is so important today, because thats where everyone looks, said a broker.
But you have to know how to build trust online, and provide people with valuable information not
sales pitches.
Once that initial contact is made online, many prospective buyers prefer to continue the conversation using
text the most popular form of communication among Millennials. Agents who rely on voice and email
messages must adapt to this shift in preferences just as they changed from phone to email a decade ago.
There are young buyers today who would be happy not to talk to an agent ever, said one broker.
They like the high tech part of the business, but they reject the high-touch approach.
But consumers still rely on agents for help in sorting through the data, negotiating the transaction and walking
them through the rest of the process. One leading Sunbelt agent has found success by enriching the buyers
informational experience pulling together video tours, interactive floor plans, blogs and neighborhood
photos, along with the listing data in order to give a 360-degree picture to the buyer. Why should a buyer
have to cross-reference different websites? she said. Thats our opportunity to provide truly exceptional
service and earn our customers loyalty.

Opportunity: Host a client party and extend the impact through social media
A successful Mid-Atlantic agent likes to host an annual party for her clients, taking lots of photos and videos.
She interviews them about what they like about their home, neighborhood and community Then she uploads
those photos and videos to her social media pages and website. Her clients love it and tell their friends and
her business gets new referrals.

Demographics drive the housing market. Thats why real estate professionals are eagerly awaiting the leading
wave of Millennial buyers, now in their late 20s and early 30s. Thats because these consumers substantially
outnumber their predecessors in Generation X, now in their 40s and 50s, and are roughly equal to the aging
wave of Boomers. The Millennials lifestyle choices combined with their careers and economic opportunities
will be key factors shaping the housing market in the next decade.
Many young adults now prefer to live in urban condominiums or rental apartments with plenty of social and
cultural activities, rather than a traditional three-bedroom home in the suburb. But that situation may change
when the U.S. economy regains its health. Right now, young adults are postponing marriage and family, said
a broker. I think that when the economy improves, well see younger people buying homes again. Dont give
up on the Millennials as homeowners.
But not all industry observers are that optimistic. Given the overall high debt levels among Millennials
and the challenging job market, they may not be able to make the transition to homeownership as easily as
prior generations. As one consultant said, You can Facebook your way to their hearts, but someone who is
$80,000 in debt and underemployed as a retail clerk isnt going to be buying a house any time soon. Others
are concerned that the nations long period of economic and financial stress has trained a generation that
homeownership is not the promised dream, and may not be worthy of pursuit.
In the next decade, the U.S. will also see a sharp increase in the number of non-Caucasian households, headed
by Hispanics, African-Americans, Asian-Americans and recent immigrants. Many of these groups particularly
recent immigrants are comfortable with having several generations under one roof. If the traditional pool
of buyers for larger single-family homes shrinks in the next few years, multigenerational families may provide a
new source of demand.
Meanwhile, the nations housing market is continuing to change. Homeownership levels have fallen to the
64 percent range, after peaking at nearly 70 percent five years ago. The uncertain U.S. economy, tight credit
marketplace and young adults deferral of marriage and family are among the reasons.

VI. Housing
Trends:
More Renters
and Fewer Owners?

Will Millennials be attracted more to rentals than

homeownership? If so, brokers should spend
more time and energy developing the rental and
property management lines of business.
A consultant

Other issues impacting the housing market include buyer concerns about ongoing foreclosures, falling
sales prices and the shadow inventory. Those issues continue to get plenty of media attention, contributing
to feelings of uncertainty. I dont think well see a real recovery until the distressed shadow inventory is
foreclosed and sold back into the private market, said an economist. The sooner that occurs, the sooner we
can return to a normal transaction volume.
There have been other significant shifts in consumer attitudes and behaviors. For example, in 2006,
homeowners expected to stay in their properties for eight years, according to the annual National Association
of Realtors Profile of Home Buyers and Sellers. In 2011, the expectation had jumped to 15 years. That
change, if it comes true, would signal a substantial drop in transaction volume over the next decade.
However, there are indications that global buyers could increase their pace of real estate investments over
the next decade, both residential and commercial. Strong economic growth in emerging markets combined
with U.S. visa policies have made investing in the U.S. more attractive to affluent individuals and families.
In addition, U.S. agents and brokers in many gateway markets are reaching out to their international
counterparts, building referral relationships. At some point, real estate may move toward a uniform global
platform, said a consultant. That would certainly have a profound change on our industry

Opportunity: Track inventory levels

To address consumers fear of falling home prices, agents and brokers can track the monthly inventory of
homes available for sale in their local markets. Traditionally, 6.5 months of inventory is a balanced market; if
the level rises to 10-12 months, then prices start to fall, but if the level is 4-5 months, then price appreciation
may occur. Its important to help consumers get a clear picture of the local inventory, and to explain why this
figure is important, said an economist.

Opportunity: Serving investment buyers

10

In a market filled with more renters and a large inventory of distressed properties, real estate professionals need
to understand how to serve investment buyers. They have different criteria for selecting a rental property,
said a consultant. And they are playing an important role in the market because they are removing homes
from inventory. That will help the market return to more normal conditions.

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For the nations real estate industry, simplification, consolidation and collaboration are blurring traditional
roles, and all eyes are now on the consumer. Workflow models will have to improve, said one consultant.
We need to have a value proposition that is understood by the consumer without needing paragraphs
of explanation.
Traditionally, there is a hierarchy of services within organized real estate: agents serve consumers, brokers serve
agents, and real estate associations and MLS organizations serve their members. There have been challenges to
that model, including Internet-only brokers, companies that focus on for sale by owner (FSBO) listings, and
lead generation companies.
But, today there are clear signs that this structure may be changing. For instance, many agent teams operate as
virtually independent businesses. As one team leader said, We dont need our brokers systems. In fact, I dont
need my local broker at all. He is clueless to my business.
At the other end of the spectrum, some brokerages are taking more control over agent training, technology and
service delivery to create a new consumer brand. I want to prove that the consumer relationship can be with
the brokerage, rather than the agent, said one broker. Based on the reviews weve been getting, this strategy is
working well.
But brokers also have to generate online traffic in order to compete with the lead-generation companies, and
find other ways to provide value to their agents. In some ways, its becoming a more collaborative effort, said
one broker. We build the web experience, create the videos and reach out to the consumer, so our agents can
deliver outstanding service to the client.

VII. Industry
Trends: Models that

Blur the Boundaries

I came from a traditional background, so I

had to reinvent myself when I formed my own
company. That is not easy because its a scary
process. But when I look at brokers today, it
seems like most of them are rearranging chairs
on the Titanic rather than facing reality.
A small broker

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Some companies have developed segmented business models, offering agents a choice of full service or
freedom shops. However, it remains to be seen whether a company can grow in two different directions at
the same time. And some are considering moving completely from one model to the other.
Meanwhile, MLS sites now offer gateways to the public, either directly or indirectly, and associations are also
engaged with consumers in multiple ways, such as publishing market updates, advocating housing issues and
launching neighborhood improvement projects.
From the standpoint of the consumer, a simpler, flatter real estate industry makes a great deal of sense
particularly if it provides greater transparency and streamlines the transaction process. Mobile, social and digital
technology has opened up a new world of information, making consumers less dependent on agents, brokers
and MLS systems for information. And having fewer players in the mix could also reduce the number of
transaction-related charges and fees for buyers and sellers.

Emerging opportunity: Learn how to engage

Many younger real estate professionals are more comfortable engaging consumers via text or email than in
voice or face-to-face meetings. On the other hand, other real estate professionals (of all ages) dont have a
Facebook page or understand how to use all forms of social media. Therefore, brokers and associations can
train agents on how to develop their communication skills in both directions and improve their business.

Emerging opportunity: Gaining lifetime customers

More than 85 percent of consumers are satisfied with the level of service they receive from an agent, according
to NAR studies, but only about 14 percent use that agent when selling the home. That presents an opportunity
for agents and brokers to find new ways to interact with homeowners over an extended period and gain
customers for a lifetime.

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In the past decade, many types of new technology companies have entered the real estate data industry. Today,
companies of all sizes compile information, build databases and develop search, social and mobile applications
tools in order to attract consumers and generate revenue from agents, brokers and advertisers.
But its much easier to gather and store data than to turn that information into knowledge and wisdom. As
one broker said, Since answers are becoming a commodity, the real value in our business is being able to ask
the right questions. Crafting the specific question creates direct consumer value and moves from information
(commodity) to advice (wisdom).
Being able to ask and answer consumer questions is one of the uniquely valuable services provided
by real estate professionals at least until more powerful thinking machines arrive on the scene. As one
consultant said, Most of what a real estate agent does today is answer questions. But since computing power
continues to increase exponentially, it may not be long before intelligent software will be able to answer those
questions using sophisticated algorithms and search tools.
Its possible that this advanced technology as demonstrated by the 2010 victory of IBMs Watson computer
in the TV game of Jeopardy will improve agent and broker productivity. Imagine having a computer in
customer support that answers the phone on the first ring, listens to the consumers request and provides an
appropriate response. That would be a clear improvement over a voicemail jail.
The latest version of iPhone has Siri, an application that verbally answers spoken questions. Though simple
and fun Siri is a harbinger of intelligent software agents of the future. Arrival of more sophisticated Siri
apps, or Watson computers, would disrupt the current online data functions.
If a thinking machine can answer a consumer question like Which neighborhood is best for me? or Which
property will appreciate more? the role of the agent or broker would be impacted. It would certainly create a
different landscape for customer acquisition and other real estate staples.
Relentlessly, technology continues to accelerate. Since 2009, mobile Internet usage has doubled every year,
said a technology consultant. By 2013, one in six U.S. consumers will access the Internet via a mobile device.
Thats a dramatic change in the way people access information. Such massive shifts in technology platforms
have historically challenged the industry, which has lagged in innovation.

VIII. Technology
Trends: Turning Data

into Wisdom
In a few years, we may not need aggregated
sites like MLS because search, and other
technologies, will become so powerful.
A technology consultant

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Real estate professionals and service providers now have to consider how to simplify information and send data
downstream to smart phones and tablets that have less computing power than a laptop or desktop computer.
They also need to develop convenient mobile apps or links that provide answers and bring mobile consumers
to their sites. Such data moves are also accelerated by the increased use of cloud-based service technologies,
which require less upfront investment than on-premise systems.

Opportunity: Sharing databases

In the near future, agents, brokers and affiliated professionals may collaborate more closely by sharing
databases. That would allow for the integrated delivery of consumer-centric services (such as brokerage,
mortgage loan and title insurance) at a lower overall cost. Data sharing at any level of the transaction or data
collection/distribution simplifies the business for practitioners and the consumer. The rapid growth of cloud
computing platforms may enhance this trend, provided the data is secure and customer privacy is protected.

Opportunity: An end to lock boxes?

One of the more time-consuming tasks for agents is trekking back to the brokers office to pick up a key to a
lock box for a showing. Lockboxes has improved this task, but physical keys and boxes do not completely make
access transparent. Rapid advances in mobile devices, perhaps coupled with a security camera or biometric
technology, might make lock boxes obsolete. An agent could go directly from listing to listing and always
lock up each home afterwards a much more efficient process.

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Today, homeowners, buyers, sellers and investors feel uncertain about the
future of the nations residential and commercial real estate markets. Will
the global economic recovery continue? Will mortgage financing become
more easily available?
Brokers and agents have similar concerns. Will the flow of foreclosures
and other distressed property sales begin to abate? What is the size of the
shadow inventory of homes and commercial properties? Have prices
finally stabilized? Will a future dumping of inventories destroy the
fragile beginnings of stability?
Because of that uncertainty, agents, brokers and consultants interviewed
for this report, point to three possible scenarios for the next few years:
1. Doom and gloom. I feel the future of the industry is a little dark
on the current path, said a consultant. The era of government
support for homeownership may be coming to an end. That might
include the closing of Fannie Mae and Freddie Mac, the governmentsponsored institutions that provide a secondary market for mortgage
loans, with no indication that private lenders would be willing to
pick up the slack. I think we will see some significant pullbacks
from housing, he added. All the other trends pale by comparison
if that happens.
2. Steady state. I believe the next few years will be much the same,
as our nation continues its slow recovery from the deep recession,
said a broker. Because real estate is an infrequent purchase for most
Americans, there is no big push from consumers to change housing
policy or to revise the agent-broker service delivery model. Change
occurs very slowly in the real estate industry, he added. Sometimes
thats a good thing.

IX. Conclusion: Leadership in a

Time of Uncertainty

The issues facing real estate today are larger

than our industry, but we can start taking steps
now to gain more control of our destiny.
A Western broker

3. Cautious optimism. There are plenty of good reasons to buy a home

now, and things will look even better in the next few years. said a
leading agent. As real estate professionals, we can succeed by offering
consumers the optimum home selling and buying experience. Today,
the first wave of the Millennial, nearly 80 million strong, is entering
the real estate market, and taking advantage of affordable prices and
low interest rates. In addition, growing demand is expected from
minority households, recent immigrants and global buyers seeking
to invest in the United States.
Since there is evidence to support each of these conflicting positions, it
will be important for real estate professionals to pay attention to shifts
in consumer sentiment, public policy statements, stay in touch with the
lending community, and analyze market demand to see which, if any, of
these scenarios becomes reality.
The underlying concern in all the scenarios is that the problems of the
real estate industry are at a level that is beyond the industrys ability
to correct. Massive institutional problems, with heavy governmental
influence or control, create a feeling of impotence and anger among
practitioners. Regardless, real estate agents, brokers, managers and
associations will still need to make wise business decisions in this time
of uncertainty.

16

Defining
Our Future
If we have learned anything
over the last few years, its that
we are the tail of the dog we
cant drive the economy. But
we can try to influence its
direction and provide a voice
for the consumer.
A Southern broker
Today, the real estate field is filled with fruit flies
and zombies, in the words of one real estate
consultant. Agents, brokers and consumers tend to
focus on the short-lived trends, which are proliferating
like fruit flies. Things like a hot new mobile app,
a controversial blog or a Twitter tweet generate
immediate interest and excitement, but soon disappear
from sight.
At the other end of the spectrum are the zombies
the real estate professionals who are simply
going through the motions without thinking about
what may lie ahead. Many say, This will pass and
everything will be back to normal again. And that
inertia is a powerful obstacle to meaningful change
on any level. There are people today who think our
entire industry is a zombie, said the consultant, and
they are eager to cut off our heads.
In our research, we saw many creative brokers and
agents redefining their business model. Some have left
one business behind to create what they think will be
the future. That reflects a long-term industry trend:
Business cycles always seem to produce the most
creative responses on the down side. As one broker
opined, I am taking the leap. What do I have
to lose?
The lesson is clear: fresh ideas, innovative service
models and strong leadership are needed at every level
of the real estate industry. A focus on high impact
areas will leverage positive results. Leaders in all phases
of business cycles analyze the moment, abandon the
past, and take bold steps.
Simplification in all areas will provide a market
advantage to the broker, the agent, or the
association executive. We hope this report will
provide a powerful stimulus in that direction.

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We have honed our strategies for playing

checkers, but now our game has changed
to chess. Its different and more complicated,
and that requires new learning if we
are going to meet the ongoing shifts in
consumer expectations.
A top agent

A website, AssociationStrategicIssues.com, contains this report in various formats and platforms

including a video, supporting research, presentations, prior reports, and other strategic items.
Writer: Richard Westlund, Design: Rushing & Associates Design, Inc.

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Apple, Realtor.com, Zillow, Trulia, Facebook, IBM, Watson, Jeopardy, iPhone, Siri,
Fannie Mae, Freddie Mac, and Twitter are trademarks of their respective owners.